... agreements as well as that of free trade areas, the effects of transport costs, and the effects of different countries having different levels of tariffs. After setting up the model for the closed economy, the chapter allows for trade and then considers the welfare implications of different types of trade...

... is added to the regular wage of the household and calculated such that the household’s optimal decision consists in consuming the household’s total endowment of time as leisure. announcement effect bequests closed economy death probability education growth human capital idiosyncratic mortality risk...

... analyse optimal tax schedules and the optimal size of the social-security system in more detail. In the following, we extend the life-cycle model with variable labour supply from Section 10.1.2 to a full general equilibrium setup with overlapping generations. aggregation balanced growth path closed...

...This chapter deals with the economic history and political economy of institutional change within India. India transited from a state-led closed economy model to globalization and deregulation between 1975 and 1991. This chapter demonstrates the efficacy of the tipping-point model of economic...

... economy vs. closed economy scenario for corporate income tax incidence before turning to the treatment of the corporate income tax as a “partial factor tax”. Demand neutrality assumption Tax incidence Efficiency costs of taxation Taxation CGE computable general equilibrium analysis Computable general...

... competition. U_c represents the utility in the competitive equilibrium. This chapter examines learning in a closed economy using a two-good (agriculture and manufacturing) closed economy model. It explains how policies promoting the industrial sector lead to higher rates of growth...

...This chapter uses an example to demonstrate the steps of specifying, calibrating, solving, and simulating a macroeconomic model in order to evaluate alternative policies for reducing domestic public debt. It extends the simple closed-economy New Keynesian model by incorporating the zero lower bound...